Labcorp Announces Strong Second Quarter 2025 Results and Raises Full-Year Guidance
Labcorp (NYSE: LH), a global leader in laboratory services, has reported impressive financial results for the second quarter of 2025. The company's revenue for the quarter was $3.53 billion, marking a significant increase from $3.22 billion in the second quarter of 2024. Diluted earnings per share (EPS) also saw a substantial uptick, reaching $2.84 compared to $2.43 in the same period last year.
Adjusted EPS for the second quarter of 2025 stood at $4.35, showing a notable improvement from $3.94 in the second quarter of 2024. Additionally, Labcorp's operating income increased to $394.5 million from $294.8 million in the same quarter last year, with operating income as a percentage of revenue growing by 200 basis points.
The company's free cash flow for the quarter was reported at $542.7 million, a significant increase from $432.9 million in the second quarter of 2024. Labcorp's solid financial performance has led to a raised full-year guidance, with revenue guidance narrowed to a range of 7.5% to 8.6%, and the adjusted EPS range narrowed to $16.05 to $16.50.
Labcorp also made significant strides in expanding its partnerships with hospitals, health systems, and regional/local labs. The company introduced new tests in high-growth specialty areas, including oncology, and broadened its consumer offerings with several new consumer-initiated tests through Labcorp OnDemand.
Furthermore, Labcorp's acquisition of select assets of Incyte Diagnostics' clinical and anatomic pathology testing businesses in the Pacific Northwest and its continued progress in the acquisition of select oncology and clinical testing assets from Bioreference Health have contributed to its strong performance.
In the biopharma laboratory services segment, Labcorp reported a 11.0% increase in total revenue, reaching $784.8 million in the second quarter of 2025, with an organic revenue growth of 7.8%. The company's adjusted operating income in this segment also increased to $123.3 million from $107.4 million in the same quarter last year.
Labcorp's robust performance has led to an increase in its cash and cash equivalents balance to $0.65 billion, and a total debt of $5.58 billion. The company invested $25.0 million in acquisitions and partnerships, paid out $59.9 million in dividends, and repurchased $200.0 million of stock during the quarter.
Labcorp's strong second-quarter results and positive outlook for the full year demonstrate its commitment to delivering sustained value to its customers, employees, and shareholders. The company's focus on innovation and technology, coupled with its strategic acquisitions, has positioned it for continued growth and success in the global laboratory services market. Following these announcements, the company's shares moved -0.62%, and are now trading at a price of $250.51. If you want to know more, read the company's complete 8-K report here.
